(Yicai) Feb. 19 -- China's CSPC Pharmaceutical Group has authorized American biotech firm Radiance Biopharma the exclusive rights to develop and commercialize an antibody-drug conjugate, a novel type of cancer medicine, in several overseas markets, including the United States and the European Union.

CSPC Jushi Biologics, an affiliate of CSPC, has granted Radiance the exclusive commercial rights for the ADC drug SYS6005 in Australia and Canada, as well as several European countries, including the United Kingdom, the Shijiazhuang-based firm said in a filing today. ADC drugs, often dubbed "biological missiles," are novel treatments that kill cancer cells while minimizing harm to healthy tissues. 

CSPC Jushi's SYS6005, a monoclonal ADC, was approved in China last December to begin clinical trials for treating patients with blood, ovarian, and non-small-cell lung cancers.

The partnership aims to leverage Radiance's research and development expertise and global reach to accelerate the drug's commercialization, according to the filing. Under the deal, CSPC Jushi will receive an upfront payment of USD15 million, with potential future payments of up to USD150 million tied to development and regulatory milestones, and up to USD1.1 billion in sales-based milestones, plus tiered royalties on annual sales.

The licensing agreement marks one of the latest moves by multinational corporations to acquire regional rights from Chinese developers of innovative medicines over the past two years. 

"Clinical data from early-stage projects in China significantly boost R&D efficiency for global companies, fueling their enthusiasm to acquire innovative drugs developed by Chinese enterprises, including ADCs and gene therapies," Zhao Bing, an analyst at Huajing Securities, told Yicai.

Another industry insider explained that such international licensing collaborations allow pharma giants to mitigate investment risks while accessing cutting-edge innovations.

CSPC's latest agreement was closely watched by investors as its Hong Kong-listed shares [HKG: 1093] ended the day 1 percent higher at HKD4.88 (US 60 cents) while CSPC Innovation Pharmaceutical [SHE: 300765], a unit of CSPC which holds a 51 percent stake in CSPC Jushi, closed 1.5 percent lower after surging as much as 4.2 percent intraday.

Editor: Emmi Laine